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Jackass star Bam Margera, whose ex-girlfriend told a Philadelphia radio station last year that he'd hooked up with Simpson while she was married to Nick Lachey, bumped into the singer at the Meatpacking District dive bar the Hog Pit.

"I was just like, 'I just wanted to apologize about all the drama, I had a crazy ex-girlfriend who wanted to cause some problems,' " Margera told PEOPLE Wednesday at the Siruis Satellite Radio gift suite in Manhattan. "And (Jessica) was like, 'Don't worry about it, sweetheart, I'm the nicest girl you'll ever meet. Everything's fine.' I'm just like, I'm glad that that happened."

A rep for Simpson was not immediately available for comment.

Margera and his pals from the upcoming movie Jackass Number Two – including Simpson's Dukes of Hazzard costar Johnny Knoxville – were in town for Thursday's MTV Video Music Awards. Margera tells PEOPLE they were on their way to the G-Spa nightclub, where, unbeknownst to him, Simpson was holding an afterparty for her new album, A Public Affair. (A Yahoo!-sponsored release party was held earlier at the Roxy nightclub and roller rink.)

"We were in the limo and someone's like, 'Yeah, Jackass has a table for the Jessica Simpson party,' " Margera tells PEOPLE. "Ooh, like, the record skips – I can't go to this, no! So (instead) we went to a dive bar across the street."

But Simpson ended up heading from G-Spa to the Hog Pit, where she met up with Knoxville, Margera and Jackass's Steve-O and Chris Pontius.

Hog Pit owner Felisa Dell tells PEOPLE that Simpson stayed from about 3:00 a.m. to 3:45. Employees eventually had to lock the doors to keep out gawkers trying to peak at the stars, who were "all really nice," Dell says.

Knoxville and his pals played pool, although "I don't think I ever saw (Jessica) hold a pool stick," Steve-O tells PEOPLE. "It was all Knoxville. He was kicking butt – he was on the table the whole time."

But no one had a better night than Margera. "I really wasn't looking forward to bumping into her," he tells PEOPLE. "Now everything's fine. I wasn't even planning on coming to the VMAs, but I'm glad I did just for that. Cheers to dive bars!"